The Normalization and Evolution of VUCA

The concept or acronym of VUCA (Volatility, Uncertainty, Complexity, Ambiguity) was created decades ago by the U.S. Army War College after the Cold War, however its popularity has come with its adoption by the corporate world over the past decade to characterize the business environment in which we are all operating, and the leadership required to navigate it.

As I reflect on the business environment we are all operating in today, it is very clear that the concept of VUCA is as applicable as ever.?That said, I would also suggest that it is evident that we are actually experiencing the normalization of VUCA.?In other words, it is simply the standard condition in which we have been operating now for some time and will continue to operate within in the future.?Our new steady state if you will.

However, as I look forward to where we are headed, what I also clearly see is that the idea of a VUCA world itself is evolving as well, in that, its original components are being amplified by the RAPIDITY of the world.?Both the rapidly rising expectations of our customers and our employees, as well as just the rapidly accelerating pace of change itself.

As businesses and business leaders in this new VUCAR world, what will be required of us to not only survive, but to thrive under these conditions??I believe the most critical component for success is first and foremost being able to accept that this IS the normal business environment in which we will operate going forward.?It is no longer simply about being prepared to manage one or all of the components of VUCA if, and when, it arises, but rather we need to adapt our businesses, structures, strategies and focus in order to leverage the ability to navigate this new environment as a competitive advantage.

I believe there are 3 key abilities an organization needs in order to accomplish this:

1. Exponential Transformation:?The ability to approach transformation in an exponential fashion to keep up with the pace of change.?Small tweaks to existing structures or linear progress won’t be enough to allow you to keep the necessary pace, or to achieve that sweet spot known as disruption.
2. Bold Innovation:?The ability to innovate boldly across all parts of the business to ensure you are an agile and future focused organization.?Beyond the ability to deliver new and innovative products or solutions to the market, the ability to innovate business models, learning models, platforms, leadership approaches and the like will be the things that keep you ahead of the competition.
3. Liberated Workforce:?The ability to empower (dare I say liberate) your workforce to increase their speed of learning and encourage risk taking and autonomous decision making.

The ideas of exponential transformation, bold innovation and liberated workforce can seem somewhat unbridled.?That is why they need to be anchored by extreme focus and discipline in order to deliver the value to your organization that you are looking for.?I suggest organizations radically focus on their customers, their employees and the future.?Delivering a meaningful and differentiated customer experience, leveraging speed of learning in your organization as a competitive advantage, and identifying new business models will be paramount to success.?Only by nailing customer centricity, developing and embedding new business capabilities, and uncovering new revenue streams will you be able to create the adaptability and resiliency needed to thrive in this new VUCAR world.

Now the hard part.?How do you bring such a transformation to life??There is not one secret formula to getting it right.?If you prescribe to that, then likely you will find yourself coming up short to your transformation goals because you have not taken into account the uniqueness of your business, your teams, your competitors, your markets and the like.?Your blueprint can be built on principals from proven models, but the roadmap should be unique to your business and your transformation.

That said, I do prescribe to the fact that leadership plays a significant role in driving every successful transformation.?But again, different situations require different approaches.?What I will share now is simply an approach that I have developed which I believe can be leveraged as a strong foundation when building your plan.

First, it is about inspiring the team to achieve extraordinary things and empowering them to be leaders of the transformation themselves.?You need to celebrate and unleash your diverse talent (hopefully you have diverse talent because it is the key to innovation) and operate in a culture of mutual trust.

Secondly, have a dynamic leadership playbook from which to operate….here is mine:

1.??????Cultivate an infinite mindset – ensure the entire team can focus beyond themselves

2.??????Connect the dots for others – share the broader picture with the team and how they are having an impact on the broader business

3.??????Leverage EQ – treat leadership as a relationship, with human focus

4.??????Act as a guardian of culture – never compromise on a culture of collaboration, empowerment and trust

5.??????Prioritize, Prioritize, Prioritize – set the team up for success.?Do not overwhelm them.?Encourage strategic tradeoffs.

6.??????Celebrate “out loud” – acknowledge achievements along the way and share the news broadly

7.??????Failure within frame – recognize “learnings from failures” as successes

8.??????Emphasize Learning – learn differently by focusing on acquiring new skills rather than simply improving current capabilities.

VUCAR is here to stay.?Don’t be afraid, don’t run from it.?Rather accept it, embrace it, adapt to it, transform, and then thrive in it.?